Yes.
Although we may experience realized investment gains or losses which will affect future earnings levels, a long-term focus is necessary to maintain profitability over the life of the business since our underlying business is long-term in nature, and we need to earn the interest rates assumed in calculating our liabilities.We may at other times exclude certain other items from our discussion of financial ratios and metrics in order to enhance the understanding and comparability of our operational performance and the underlying fundamentals. These forward-looking statements, including statements about expectations for future shareholder dividends, are subject to numerous assumptions, risks, and uncertainties, many of which are beyond our control. 45 0 obj <>/Filter/FlateDecode/ID[<206DAC8A31875447A80B102AE46A5A46><2C6637ED4B8F8F49AA235E42978C47B5>]/Index[22 49]/Info 21 0 R/Length 106/Prev 55890/Root 23 0 R/Size 71/Type/XRef/W[1 2 1]>>stream Salary amounts are rounded according to the carrier's rules, e.g., 52, 500 rounded to 52, 000. Group long-term disability sales were $55.2 million in the second quarter of 2020, an increase of 13.3 percent from $48.7 million in the second quarter of 2019.
Premium income for this line of business decreased 1.2 percent to $456.3 million in the second quarter of 2020, compared to $461.7 million in the second quarter of 2019, driven primarily by lower sales and persistency. The Unum UK line of business reported adjusted operating income, in local currency, of £10.1 million in the second quarter of 2020, a decrease of 55.5 percent from £22.7 million in the second quarter of 2019. The interest adjusted loss ratio for long-term care for the rolling twelve months ended June 30, 2020 was 81.1 percent which is below our expected range. Persistency in the dental and vision product line was 81.7 percent for the first half of 2020, compared to 84.7 percent for the first half of 2019. Bookmark the permalink. If an employee becomes disabled again due to the same condition within a specified number of days, the recurrent provision allows continued disability payments under the original claim.The number of days for the recurrent provision is stated in the policy.If an employee becomes disabled after the number of days in the recurrent provision, or due to a new medical condition, a new claim would need to be filed.Depending on the definition of disability as defined in the policy, an employee may be able to receive benefits and work part-time.Most policies will allow employees to work part-time while on claim. The benefit ratio in the second quarter of 2020 was 81.8 percent, compared to 72.9 percent in the second quarter of 2019, due primarily to higher claims incidence in the group life product line resulting from the impacts of COVID-19. Plus, many Unum policies are portable, so you might be able to continue your coverage if you change jobs. The benefit ratio for the voluntary benefits product line was 43.1 percent in the second quarter of 2020, compared to 42.5 percent for the second quarter of 2019, due to lower policy terminations, partially offset by lower claim incidence. Net investment income decreased 1.9 percent to $57.1 million in the second quarter of 2020, compared to $58.2 million in the second quarter of 2019, due to a decline in the yield on invested assets, partially offset by an increase in the level of invested assets. We believe after-tax adjusted operating income is a better performance measure and better indicator of the profitability and underlying trends in our business.Realized investment gains or losses depend on market conditions and do not necessarily relate to decisions regarding the underlying business of our segments. The policies have exclusions and limitations which may affect any benefits payable. The following factors, in addition to other factors mentioned from time to time, may cause actual results to differ materially from those contemplated by the forward-looking statements: (1) the impact of the COVID-19 pandemic on our business, financial position, results of operations, liquidity and capital resources, and overall business operations; (2) sustained periods of low interest rates; (3) fluctuation in insurance reserve liabilities and claim payments due to changes in claim incidence, recovery rates, mortality and morbidity rates, and policy benefit offsets; (4) unfavorable economic or business conditions, both domestic and foreign, that may result in decreases in sales, premiums, or persistency, as well as unfavorable claims activity; (5) changes in, or interpretations or enforcement of laws and regulations; (6) a cyber attack or other security breach could result in the unauthorized acquisition of confidential data; (7) the failure of our business recovery and incident management processes to resume our business operations in the event of a natural catastrophe, cyber attack, or other event; (8) investment results, including, but not limited to, changes in interest rates, defaults, changes in credit spreads, impairments, and the lack of appropriate investments in the market which can be acquired to match our liabilities; (9) increased competition from other insurers and financial services companies due to industry consolidation, new entrants to our markets, or other factors; (10) changes in our financial strength and credit ratings; (11) our ability to develop digital capabilities or execute on our technology systems upgrades or replacements; (12) actual experience in the broad array of our products that deviates from our assumptions used in pricing, underwriting, and reserving; (13) availability of reinsurance in the market and the ability of our reinsurers to meet their obligations to us; (14) ability to generate sufficient internal liquidity and/or obtain external financing; (15) damage to our reputation due to, among other factors, regulatory investigations, legal proceedings, external events, and/or inadequate or failed internal controls and procedures; (16) effectiveness of our risk management program; (17) contingencies and the level and results of litigation; (18) ineffectiveness of our derivatives hedging programs due to changes in the economic environment, counterparty risk, ratings downgrades, capital market volatility, changes in interest rates, and/or regulation; (19) fluctuation in foreign currency exchange rates; and (20) recoverability and/or realization of the carrying value of our intangible assets, long-lived assets, and deferred tax assets.
If they become disabled after the number of days in the recurrent provision or due to a new medical condition, they will need to file a new claim.The policies or their provisions may vary or be unavailable in some states. Unum Group Disability Insurance for employers can provide financial protection and peace of mind when your employees are unable to work. Group long-term disability sales were $55.2 million in the second quarter of 2020, an increase of 13.3 percent from $48.7 million in the second quarter of 2019. If an employee is on claim and the policy is cancelled or the employee is terminated from employment, a claim will be paid to the same duration it would have been had either event not occurred. Once the elimination period (the number of days that must elapse before you’re eligible for benefit payments) is satisfied and you continue to meet the definition of disability, your Long Term Disability Insurance benefits can extend through the Maximum Benefit Period.Yes, in most cases. Sales in the dental and vision product line totaled $12.7 million for the second quarter of 2020, a decrease of 10.6 percent compared to the second quarter of 2019. The benefit ratio for the individual disability product line was 52.8 percent for the second quarter of 2020, compared to 53.5 percent for the second quarter of 2019, due to favorable claim recoveries and higher mortality experience.